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Why Morgan Stanley Thinks Apple (AAPL) Shares Could Be Turning the Corner

Apple Inc. (NASDAQ:AAPL) is one of the AI Stocks Making Headlines This Week. One of the most notable analyst calls on Friday, August 15, was for Apple Inc. Morgan Stanley reiterated the stock as “Overweight” stating that Apple shares appear to be “turning a corner.”

The optimism comes after stronger-than-expected iPhone sales drove an upward revision in September-quarter production plans.

“We are turning more bullish — forward iPhone unit/revenue growth expectations are still relatively muted, many of the same factors that got us bullish last July remain, we’re past peak tariff risk…”

The firm’s Greater China technology hardware team raised their September quarter iPhone build estimate to 54M units, or flat year-over-year, from previous call for 50Million. The raise has been due to better than expected iPhone sell-through in the June quarter that reduced iPhone channel inventory.

A busy sidewalk filled with people using Apple devices like iPhones, iPads and Apple Watches.

Moreover, iPhone 16, calendar 2025 second half iPhone 17 builds remain unchanged at 80M-85M units, the analysts added.

“We think the Apple story could be turning the corner,” stated the bank, pointing to cited “elongated replacement cycles,” “pent-up iPhone demand,” “structural gross margin tailwinds,” and easing tariff and regulatory headwinds.

The firm has an Overweight rating and $240 price target on the stock.

With institutions “more underweight Apple than any other megacap tech stock” and hedge funds “biased neutral to short,” Morgan Stanley said the company is “one potential AI partnership away from breaking out.”

Apple is a technology company known for its consumer electronics, software, and services.

While we acknowledge the risk and potential of AAPL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AAPL and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 10 Buzzing AI Stocks on Wall Street and 10 AI Stocks Making Headlines This Week

Disclosure: None.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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